"Insurance is to protect your stuff!" That's my job, I help you protect your stuff, including your net worth!
Renters Insurance, from what I have seen, is rarely purchased. It's INSANE for you NOT to have a renters policy if you live anyplace you DO NOT OWN. Why?
1. Your stuff is not covered by your landlord
I don't care what your landlord tells you. His homeowner policy is never going to cover your stuff. Yes, I have actually had people tell me their insurance is covered by their landlord. It's NOT. If you're renting you need a renters policy. PERIOD. If you are renting a room from a friend, their homeowner's policy does not cover you! Buy your own policy and protect your stuff!
2. Catastrophes and stupid neighbors happen
It's not going to happen to you right? Tell that to the people who lived in this mobile home park.
Hurricane Ike, the tornadoes in Tuscaloosa, Alabama, Joplin, Missouri, and Moore, Oklahoma. The photo above shows damage from an F-2 tornado. All of the other storms I listed were F-5′s- the highest rating a tornado can get. They leveled neighborhoods.
Think about your cable television services for a minute. Last thing you would think that would cost you money in the event of a catastrophe like this, right? You know those cable boxes you get from the company so you have a DVR? That equipment they so generously loan you in order to provide you television services? The people from that mobile home park had to replace those out-of-pocket if they didn't have Renters Insurance. They were over $200.00 each. Some people had 4 in their homes. Not only did they lose their possessions, but they now owed money- all over something that wouldn't happen to them. For the price they paid to rent ONE of those boxes each month, they could have had a Renters Insurance policy. Sad isn't it?
If you live in an apartment, all it takes is one person not watching a pan on the stove, or falling asleep while smoking and you lose everything. Are you willing to risk everything you own on the intelligence/responsibility of your neighbors? I'm not!
3. Liability Law Suits
We all like to think all of our friends are AWESOME and amazing people. I'm sure most of them are great people, until money gets involved. For example, your friend comes over and brings her toddler with her for a visit. You and your friend sit on the couch for a nice long chat and the child is playing in the floor. The child gets up and starts walking around, trips on an area rug and busts her face open on your coffee table. How about a broken nose? Serious head trauma? Who is going to pay for that? If you have a good friend, of course they will handle it. However, I have seen no less than 3 law suits in the last 5 years over liability issues. All of them involved friends.
4. Inability to Use Your Home
Where are you going to go if your home burns down? What if a tornado rips your roof off? Where will you live while the repairs take place? A Renters Insurance policy will help cover the cost of hotel stays. It will cover laundry fees if you're displaced and help with food or clothing if you need it in an emergency. It will cover the extra cost of utilities if you stay with a friend for a while and your share of the rent.
Let's face reality. Crime is going up in most cities. Theft is pretty notorious where I live. I probably file more theft claims than I do weather related claims. (At least lately anyway.) What happens when you come home and your stuff is gone? Do you have the money in the bank right now to buy a new tv, computer, stereo, or furniture? How about that cable box you borrowed from the company?
6. It's inexpensive
Most companies require a minimum limit of $25,000. Think about everything you own. Think about replacing salt and pepper shakers, silverware, cleaning supplies, linens, cookware, clothing, food, furniture, pot holders, and anything else you might have in your home. I've seen these policies for as low as $8.00 a month. EIGHT. Skip Starbucks or eating out one or twice a month and you will have money for a Renter's Policy.
7. You will get a discount on your auto insurance
If you have a Renters Insurance policy written through the same company as your auto insurance, you will get a discount on BOTH policies! I've seen auto insurance go down in cost MORE than the price of the Renter's Insurance policy just because of that discount. Basically, their auto insurance went down so much the Renter's policy was FREE. Yes, I said it FREE. One more time: FREE!
If you rent, please call your agent today and get a quote on a policy. There is nothing out there that feels better than peace of mind.
Do you have a Renters Policy already? If you don't why not?